Electricity crisis

State-power supplier Eskom has said that its "downward trend" in the electricity supply reserve margin was expected to continue for the next five to seven years until the new base-load power plant is built.

"Additional failures have occurred on generating units over this period of planned maintenance. All emergency resources have been exploited, which include the use of Eskom's gas turbines and buying back power from large industrial customers. However, this is not sufficient to address the shortfall, hence the need for load shedding," the company said in a statement.

Eskom said that the continued growth in the economy had exhausted its surplus electricity generation capacity and reduced the reserve margin progressively, and it encouraged customers to curb their demand for power.

The Eskom capacity expansion programme, with an investment of R150-billion, has been accelerated and this aims at upgrading South Africa's power supply infrastructure and building new power stations.

However, until new power stations are commissioned, supply is set to remain tight and load shedding a constant reality.

And despite the fact that we have rolling blackouts throughout the country, Eskom released the following press release :

Media Release - 22 January - PRICE INCREASE

Tuesday, 22 January 2008

ESKOM’S RESPONSE TO PRICE INCREASE FOR THE 2008/9 FINANCIAL YEAR

The National Energy Regulator of South Africa (NERSA) has announced its decision to grant Eskom a price increase that translates into an increase of 14.2% for the 2008/9 financial year. Eskom had applied for a rule change that would have resulted in an average increase of 18.7%. The application by Eskom was intended to address the recovery of the costs of primary energy (fuel) and for the acceleration of its capital expansion programme to meet growing demand for electricity.

Higher fuel costs are due to the fact that coal prices had risen over 30% in the last year, adding to power generation costs. Furthermore, the cost of plant and equipment has risen by 20% to 50% in the past year, and has doubled in five years.

The increase applied for is therefore necessary given the circumstances. It should also be pointed out that Eskom also makes a contribution by focusing on improved productivity and efficiency.

“The lower price increase will make it even harder for Eskom to satisfy conditions in the current financial markets to assure the funding needed for the capital expansion programme to ensure security of supply. Eskom will need to borrow more than if it had been granted the 18.7%. In addition, the current electricity prices are unsustainable and will result in steeper increases being required in the near future. However, Eskom would like to express its appreciation to NERSA for having considered our application in a transparent process and for acknowledging some of the challenges being faced by Eskom. We are considering the implications and the options available to us to manage the situation,” says Bongani Nqwababa, Eskom’s Finance Director.

WHAT IS LOAD SHEDDING?
When there is not enough electricity available to meet the demand from all Eskom’s customers, it could be necessary to interrupt supply to certain areas. This is called load shedding. Load shedding is: A last resort measure. Only when all other options at its disposal have been exhausted, such as running its power stations at maximum capacity and interrupting supply to industrial customers with special contracts, will Eskom cut supply to other customers. A controlled way of rotating the available electricity between all customers. Load shedding schedules are drawn up to ensure that a few areas do not bear the brunt of the shortages. By spreading the impact, affected areas are not interrupted for more than two hours at a time, and in most cases customers can be informed of interruptions in advance. An effective way to avoid blackouts. Shortages on the electricity system unbalance the network, which can cause it to collapse. By rotating the load in a planned and controlled manner, the system remains stable. Hints and Tips in case of Power Outages Eskom has a short term power supply shortage, while at the same time experiencing higher than expected demand. From time to time this may result in power outages – what is termed load shedding – for short periods across the country. The more electricity South African consumers can save by switching off non-essential appliances, or not switching them on, the fewer power outages there will be. Below are hints and tips to assist you in case of power outages. Special Needs If you have special needs such as medical support equipment (ventilators, dialysis machines, etc) please notify your medical practitioner immediately so that special arrangements can be made. Such special assistance is only available by authorisation of a registered General Practitioner/Doctor or Medical Specialist. If you require advice regarding the provisions that have been made for special needs kindly call the Eskom Media Desk on any of the following numbers: 011 800 5550 / 011 800 5310 / 011 800 4539. What WILL be affected by power outages? The following will not be available when the electricity supply to your home is switched off: Geyser and hot water supplies Cookers, electric kettles, microwave ovens and refrigerators Lights TV and Hi-Fi equipment Electrically motorised security gates and garage doors Pool pumps Personal computers Electric air conditioning Electric alarm clocks Household electric pumps for irrigation or plumbing systems Electrically operated ignition systems on certain gas appliances Automatic electronic control systems and time clocks Switch it off: If the power goes off, it is safer to simply turn off (or even better, disconnect) any electrical appliances that you were using. Keep one light switched 'on' to alert you when the power returns. Clearly mark on/off switches with a piece of masking tape. When the power comes back on, it may do so with a momentary surge, which can damage electronically controlled appliances such as computers, televisions sets, VCRs, DVDs, etc. Remember to re-set time control clocks on cooking ovens, pool pumps, geysers and other automatically controlled appliances, unless these are battery operated. Also remember that householders are responsible for all electricity usage and appliances in their homes. What will usually NOT be affected by power outages? Security systems that have battery back-up (some may go off due to the interruption) Telephones that are not reliant on mains electricity (answering and fax machines may however be affected). Cell phones Useful tips to minimise inconvenience when the power is off: Think about communication: Ensure that your cell phone is always fully charged when power is available. Think about transport: Ensure that your vehicle (car, bakkie, motorcycle, etc) always has fuel in the tank since during power outages, petrol stations cannot pump fuel. Think about cash: Ensure that you have adequate cash as auto tellers cannot operate without electricity. Think about access, security and safety: Release automatic electric garage door mechanisms to allow you to gain access to your property during a power outage. Release electric security gates and switch to manual operation to avoid being either locked out of or into your home. Keep temporary lighting readily available, e.g. electric torches, candles, etc. Be sure to locate these items in places where they will be easy to find in the dark. Keep a torch (with fresh batteries) by your bedside at all times Obtain a small LP gas lamp, as they provide good quality lighting for a large area. Think about keeping things cool and heating them up: Boil water and keep in thermos flasks for hot drinks for when the power is scheduled to be switched off. Use a thermal cover on tea pots and other pots and pans to keep hot drinks, and meals warm. Prepare meals beforehand in readiness for periods when there will be power cuts. Obtain a small stand-by bottled LP gas heating ring for essential cooking and to boil water for hot beverages. Keep adequate stocks of essential foodstuffs. Keep refrigerator and freezer doors closed, as a power outage of four hours should not cause food spoilage, and a freezer should keep frozen food safe for at least a day. It is a good idea to have alternative available snacks that do not need refrigeration. Most medication requiring refrigeration can be kept in a closed fridge for several hours without spoiling. To be sure about this, check with your doctor or pharmacist. Fill plastic containers with water (still leaving some space inside each container for expansion during freezing) in a deep-freeze or the freezer compartment of your fridge. This (frozen) water will help keep food cold during a power outage.